Rethinking Automotive Pricing in a World Where Software, Sensors, and Subscriptions Drive Value.
The automotive industry is competing on software, intelligence, and experience. And here’s the real disruptor:
- More than 40% of new-vehicle differentiation now comes from software-led features, not hardware.
- Yet over 60% of OEMs still rely on outdated cost-plus pricing, leaving millions in unrealized value.
This seismic shift is exactly why value-based pricing has become the new strategic edge.
Why Innovation-Led Automotive Offerings Require a New Pricing Approach
Modern mobility is being shaped by EVs, ADAS, OTA upgrades, and connected services, and each delivers value that traditional pricing cannot capture.
Here’s why the shift demands a smarter pricing lens:
- Value is now subjective and segment-specific: OTA feature adoption grew 28% YoY in 2024, proving customers now expect on-demand upgrades.
- Pricing cannot be component-linked alone: ADAS-related safety enhancements reduce accident probability by 27%.
- Digital services create recurring value: The global automotive software and subscription market hit USD 78 billion in 2024, growing rapidly.
- Customer expectations are shaped by tech sectors: 74% of EV buyers expect flexible pricing for digital services.
Nexdigm’s Value-Based Pricing Framework for Automotive Clients
Our multi-layered framework helps OEMs, Tier-1 suppliers, and mobility startups design pricing structures that reflect how customers actually perceive value.
- Customer Segment Mapping: We identify what tech-savvy buyers, families, fleets, and premium users value most.
- Willingness-to-Pay Analysis: Using conjoint analysis, behavioral data, and digital usage patterns to pinpoint the exact upgrade or churn threshold.
- Competitor & Substitute Benchmarking: Analyze how legacy OEMs, EV-first players, and aftermarket providers price similar offerings.
- Feature-Value Correlation Modeling: We tie price points to the perceived benefit, not just manufacturing costs.
- Strategic Pricing Recommendations: Designing tiered packages, bundled offerings, regional models, and dealership-aligned pricing.
Nexdigm Case
A leading EV components player struggled to monetize its new ADAS-enabled product suite, losing margins due to outdated cost-plus pricing. Nexdigm restructured their pricing using value-based segmentation, competitor benchmarks, and WTP modelling.
Result: A 21% improvement in feature-level margins, faster adoption of premium upgrades, and significantly stronger dealer alignment, proving how value-based pricing can unlock hidden revenue.
To take the next step, simply visit our Request a Consultation page and share your requirements with us.
Harsh Mittal
+91-8422857704